Brexit: the customs implications and solutions
BusinessEurope’s paper on Brexit’s customs implications and solutions is meant to inform policymakers and businesses alike of the customs-related impact that Brexit could have, to help businesses understand the issues they might face and to provide the policy makers with proposals to eliminate or offset the problems identified in this paper. The exact customs implications resulting from Brexit would very much depend on the agreement the UK and the EU reach regarding their future relationship. Without prejudice to the type of future relationship that the EU and the UK will negotiate, it is clear that every option that represents less than fully fledged membership of the single market and the customs union will create economic barriers between the EU and the UK that could lead to significant costs for businesses.
Until the type of future model has been determined and ratified, business lacks the clarity necessary to prepare adequately for Brexit, and the possibility of a “cliff-edge” scenario whereby the United Kingdom leaves the European Union and ends the transition period without an agreement on the future relationship remains a high risk.
BusinessEurope urges policy-makers to find the best model to address the issues that we outline in this paper in a timely manner. In doing so, we call on the EU and the UK to maintain the closest possible economic relationship while preserving the integrity of the single market, in order to minimise the economic impact of Brexit. Rather than cutting through value chains, decision-makers should be cautious to preserve and strengthen the European continent as one of the world’s important industrial clusters, as other regions across the world continue strengthening theirs.